MWANGA Community Bank (MCB) has said it will team up with Vodacom Tanzania to establish M-Pesa services to enable customers to use mobile money solution to repay bank loans.
This will be a second window that brings closer banking services in rural areas, after TiGoPesa, that also feature same services which include deposit, withdraws and sending money.MCB Managing Director Mr Abby Ghuhia, said in a statement that they expect to officially launch the M-Pesa service soon after signing an agreement with Vodacom.
"This will bring financial inclusion to the surrounding community and bring the advantage of letting bank customers transact without going to the bank physically," Mr Ghuhia said.Currently, MCB is also an agent for TiGo-Pesa whereby customers can repay their bank's loan, withdraw money or send money through these services.
In a bid to further widen and bring closer the MCB services, the bank is set to join Umoja Switch ATM network. The MD said that the service will ease the problem of lack of branches as customers will be able to withdraw money on any ATM connected to the Umoja network throughout the country.
"Customers with VisaCard ATMs, which are used on many banks, can also access their money. These banks include CRDB, NBC and Standard Chartered," he said.According to UmojaSwitch, nine community banks are on its docket out of eleven community banks in the country.
Umoja network started five years ago, having only six members, 30 ATMs in four regions, but has become a force to reckon with today with over 150 ATMs spread across the country.According to UmojaSwitch Chief Executive Officer Danford Mbilinyi, a spot study by the network shows that individual customers are now pressurising their banks to join it due to its rural outreach.
Last year, MCB, located in Kilimanjaro region, has made a hefty pre-tax profit of 169.1m/- compared to 6.3m/- realized in previous year.